Banking, financial and tax advisers named for Nama

THE GOVERNMENT agency responsible for the State’s “bad bank”, the National Asset Management Agency (Nama), has appointed HSBC and PricewaterhouseCoopers (PwC) to advise on the running of the new State body.

The National Treasury Management Agency (NTMA) appointed HSBC Investment Bank in London as banking and financial adviser to Nama and PwC in Dublin as tax adviser to the bad bank agency after a tender process.

The Government is seeking approval for the Nama plan from EU competition commissioner Neelie Kroes. Asked whether the European Commission wanted the Government to produce a business plan for Nama as part of this process, a spokesman for Ms Kroes’ office said: “The Commission confirms that the Irish authorities are in close contacts with DG Competition as regards the establishment of the National Asset Management Agency and its compatibility with state aid rules.”

He added: “Nonetheless, the Commission cannot comment on the exact nature of the exchange to protect the confidentiality of the ongoing co-operation procedure.”

The NTMA said tenders were being evaluated to appoint legal advisers to Nama and they are likely to be named by Wednesday.

Some 17 applications are being assessed for the contract.

A team led by veteran banker Mark Stadler, head of the financial institutions division within HSBC at the bank’s London headquarters in Canary Wharf, will advise Nama on financial issues, while PwC partner Colm Kelly in Dublin will advise on tax issues primarily arising from its work on overseas property assets held by the banks.

The tax advisers are expected to advise on potential tax advantages of double taxation agreements on the transfer of properties in the UK, the US and countries in Europe to the agency.

The Department of Finance has published a Bill amending the bank guarantee which will allow the lenders to raise longer-term funding beyond the guarantee’s expiry in September 2010.

The Bill also outlines the Government’s plans to transfer pension funds from universities and a number of semi-state companies to the NTMA to form part of the National Pension Reserve Fund.

The department said that following the transfers in 2009 and 2010 the pensions will be dealt with on “a pay-as-you-go” basis.

The Financial Measures (Miscellaneous Provisions) Bill 2009 includes a provision to ensure legal certainty that all direct debit mandates amounting to more than €100 million a year will still have effect when they are transferred to the new pan-European Single Euro Payment Scheme (Sepa) before a November 1st deadline.

The department said this would prevent major disruption to cashflow for utility companies such as ESB and Bord Gáis, insurance companies and mortgage providers.